Footwear, surf, skate and streetwear brands are among the worst performers on ethical production in Australian fashion, according to Baptist World Aid’s latest Ethical Fashion Report.
Along with ultra-fast fashion, these sectors fell well below the industry average on both worker rights and environmental practices. Baptist World Aid shared that the results revealed an urgent need for change and accountability in those categories.
Denim, intimates, outdoor and technical performance gear, and luxury labels were among the top performers. However, no sector averaged above 70 per cent, and the report found significant room for improvement across the industry. Some brands and sectors had improved since the previous report in 2024.
The 11th edition of the report assessed more than 500 brands. They scored an average of 31.5 out of 100, up just 0.2 points on 2024.
Some 93 per cent of companies had labour rights and sustainability policies in place. However, many admitted they had little visibility or implementation beyond their direct suppliers.
“Brands are getting better at talking about sustainability, but that talk isn’t translating to real change on the ground,” Baptist World Aid ethical fashion lead Katherine Halliday said.
Halliday said indicators such as supplier tracing and living wages had stayed flat for years, with brands repeating the same commitments from one report to the next. She said rising living costs were pushing both shoppers and brands towards cheap clothing to keep up with trends.
“We’re seeing a concerning trend towards complacency and a lack of accountability across the industry.”
Worker rights and wellbeing was the weakest area across supply chains. Some 87 per cent of companies could not show they paid a living wage to any facility in their supply chain, and just 4 per cent had committed to living wages across all final-stage facilities.
According to the report, most brands were meeting minimum regulatory requirements without going further. While 71 per cent of companies published a compliant Modern Slavery Statement, only 9 per cent of those could evidence union presence or collective bargaining across most final-stage suppliers.
On the environment, brands were stronger at putting practices into action, but their commitments had weakened compared with earlier reports. Half of the companies assessed had no published emissions reduction targets for their supply chain.
Sustainable fibre use rose from 30 per cent to 38 per cent since 2024. However, overall fibre production also grew, particularly petroleum-based synthetics, and outpaced any environmental benefit.
The report also flagged overproduction as a growing challenge. Australia is the world’s highest consumer of textiles per person, with more than 200,000 tonnes of clothing ending up in Australian landfill each year.
Baptist World Aid is calling on consumers, companies and policymakers to drive change across the full supply chain.
“Consumers and policymakers have influence over production standards,” said Baptist World Aid CEO Melissa Lipsett.
“We need to hold brands to a higher standard, and demand that they follow through on their commitments to do better for people and the planet.”
The full report and guide are available on the Baptist World Aid website.